Burbank Connexion Sells For $123M
Highlighting the growing demand for office space in Burbank, Intercontinental Real Estate Corp. earlier this month purchased the Connexion Burbank office campus from a joint venture between Lincoln Property Co. and Angelo, Gordon & Co. for $123.5M.
The 337,904 SF three-building office campus sits on 3 acres at 303 and 333 North Glenoaks Blvd. and 300 East Magnolia Blvd. The buildings are 91% occupied and make up more than 50% of downtown Burbank’s Class-A office, according to Newmark Knight Frank.
“Connexion Burbank was attractive to capital because it provided newly renovated creative office product on nearly a full city block,” NKF Capital Markets co-head of U.S. Capital Markets Kevin Shannon said in a news release.
NKF’s Shannon, Rob Hannan, Michael Moll and Laura Stumm represented the seller. Lincoln Property Co.’s Kent Handleman and CBRE’s Doug Marlow served as local market leasing advisers in the sale. Intercontinental Real Estate Corp. represented itself.
The sale comes four months after Blackstone purchased majority ownership of six office properties totaling 3.3M SF in Burbank’s media district for $1.7B.
Shannon said the city is benefiting from the “Blackstone Effect,” in which he expects the market rents in Burbank to be pushed up.
Built in 1978, 1983 and 1984, the three properties recently underwent an $8M renovation and rebranding. The offices feature upgraded lobbies, the addition of two outdoor decks that lead down into an open patio area, extensive plaza renovation, new common areas and other modern upgrades.
“With the recent $60M renovation of Burbank Town Center and several new multifamily developments in the pipeline, the area continues to improve and solidify itself as Burbank’s urban core,” NKF Managing Director Michael Moll said.